Sensex tumbles 117 pts despite positive IIP data

Mumbai: The benchmark BSE Sensex fell over 117 points in early trade today on continued capital outflows by foreign funds and selling by investors despite improved IIP numbers and steady inflation data.

A weak trend at other Asian markets after negotiations between Greece and its creditors broke down dampened sentiment.

The 30-share barometer, which had gained 54.32 points in the previous session on Friday, was trading down 117.46 points, or 0.44 per cent, at 26,307.84 with IT, technology, consumer durables, power, banking, PSU and metal sectors leading the losses.

On similar lines, the NSE Nifty shed 38.05 points, or 0.47 per cent, at 7,944.85.

Brokers said sentiment remained weak even as positive IIP data — industrial production grew at a 2-month high of 4.1 per cent in April — failed to trigger buying.

Meanwhile, retail inflation edged up to 5.01 per cent in May as against 4.87 per cent in April. The Consumer Price Index stood at 8.33 per cent in May 2014.

Shares of Cairn India today rose 0.50 per cent to Rs 181.65 after the announcement of merger between metal and mining company Vedanta and the oil firm in a USD 2.3 billion all-share deal to create India’s largest diversified natural resources play.

Vedanta Ltd was also trading 0.92 per cent higher at Rs 185.70.

Among other Asian markets, Hong Kong’s Hang Seng was down 0.68 per cent while Japan’s Nikkei slipped 0.99 per cent in early trade.

The US Dow Jones Industrial Average ended 0.78 per cent lower in Friday’s trade.